Costs continue to shrink profit despite growing sales for wholesaler

Northern Irish soft furnishings distributor Bedeck registered a 11.4% year-on-year uptick in sales to £35.5m for its latest full-year of trading ended 30 September 2015, however a rise in costs impacted upon the firm’s profits margin for a second successive year.

Specialising in bedding and home accessories, the County Armagh-based wholesale and retail business saw operating profit dip by 20% to £1.2m despite the surge in revenue, while pre-tax profit also shrunk from the £1.5m registered for the previous annual period to £1.2m.

However, Bedeck revealed that favourable currency fluctuations improved its gross profit percentage to 59.3%, up from 57.1% in 2014.

Bedeck said that the company was exposed to the price of raw materials and consumables, with costs rising by 2.7% to £14.8m, while stating that although it cannot mitigate this risk, it ‘affects all companies in our market equally’.

Established in 1951, Bedeck has two stores in its home country located in Belfast and Dungannon, as well as over 30 House of Fraser concessions across the UK and Ireland.